AMD's Beats Expectations, Cuts Losses Significantly in Q1 2013

Paul Lilly

Restructuring efforts are paying off for AMD as the PC market transitions to mobile.

Go ahead and fire up Survivor by Destiny's Child and fast forward to the chorus, as there may not be a more appropriate string of lyrics to describe the attitude at Advanced Micro Devices (AMD). With the PC market making a mad dash towards mobile devices and system sales down in general, AMD somehow managed to trim losses in Q1 2013 by about $444 million compared to the same quarter a year ago, beating out expectations in the process.

AMD announced first quarter revenue of $1.09 billion, an operating loss of $98 million, and a net loss of $146 million, or $0.19 per share. A year ago, AMD was reporting a net loss of $580 million, or $0.80 cents per share, and just last quarter losses added up to $473 million, or $0.63 cents per share.

"Our first quarter results reflect our disciplined operational execution in a difficult market environment," said Rory Read , AMD president and CEO. "We have largely completed our restructuring and are now focused on delivering a powerful set of new products that will accelerate our business in 2013. We will continue to diversify our portfolio and attack high-growth markets like dense server, ultra low-power client, embedded and semi-custom solutions to create the foundation for sustainable financial returns."

AMD's Computing Solutions segment revenue decreased 9 percent sequentially and 38 percent year-over-year during a period when global PC shipments suffered the worst year-on-year decline in almost two decades, according to data by International Data Corporation (IDC). Rival Intel saw its PC Client Group revenue decrease 6.6 percent sequentially and 6 percent year-over-year, though the chip maker still managed to make a profit in Q1 to the tune of $2 billion.

One thing that should help AMD's bottom line going forward is the inclusion of its custom 8-core "Jaguar" APU in Sony's upcoming PlayStation 4 console . The PS4 also uses Radeon graphics.

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